Inside Kenya’s borrowed fancy lifestyles

CBK data shows loans to personal and household sector have risen to Sh943 billion as more Kenyans borrow to fund fancy lifestyles /AI-ILLUSTRATED

For years, owning a car, upgrading a smartphone or furnishing a home was largely a matter of saving until there was enough cash to make the purchase.

However, that was then because the equation is rapidly changing as lenders open up the market to finance household items that are now accounting for the largest share of loans.

Consumers across Kenya are increasingly turning to banks, SACCOs, asset financiers and digital lenders to pay for things they want — and, in some cases, things they would previously have postponed until they could afford them.

Cars are being bought on hire purchase. Phones are being paid for in instalments. Furniture, televisions, refrigerators and other household appliances are increasingly being acquired through credit.